BANKING UNIVERSITY OF HO CHI MINH CITY

BBM 1004- Principle of Economics

Instructor

Assoc. Prof Pham Dinh Long

Pass Mark

The pass mark for the module is 50%

Delivery Type

This module requires you to attend classes or events at scheduled time and in specific locations.

Pre-Requisites

None

Co-Requisites

None

Module Outline

Unit overview
This unit is an introduction to microeconomic and macroeconomic analysis and its
applications. In the microeconomic part, we’ll look at very basic individual and firm
decisions such as what to buy; how much to buy; and what to produce; and how much
to produce. From this analysis, a simple model of individual and firm interaction
(supply and demand) will result. Then we’ll use this model to see how government
policies affect the interactions and outcomes of the supply and demand model. This
part of the course will also focus on the optimal behavior of the firm. We’ll look at how
the firm should act depending on whether there is one firm, a couple of firms, or many
firms in the same market and how the actions of individual firms relate back to the
model of supply and demand. Finally, we’ll study how consumers make decisions to
maximize their satisfaction in the market.
The second part of the unit covers topics in macroeconomics - the study of the
economy as a whole. It is designed to provide students with a comprehensive
framework for analyzing macroeconomic events and issues. The topics include the
determination of output, unemployment, inflation, interest rates, exchange rates,
business cycles, and long-run economic growth. The questions of concern will include:
Why are some countries rich and others hopelessly poor? What are the sources of
economic booms and recessions? Why is there unemployment? What are the sources
of inflation? And, how do government policies affect output, inflation and
unemployment?

Assessment information
Learning outcomes
Learning outcomes for the unit are outlined below. Upon completion of this unit,
students will be able to:
1. Explain and apply key economic concepts appropriately.
2. Construct sound economic arguments in terms of these concepts.
3. Apply simple economic models to the analysis of relevant
economic issues.
4. Apply economic reasoning to make deductions about market
behavior.
5. Explain and evaluate the likely effects of government economic
policy.

Assessment summary
ASSESSMENT ASSESSMENT ITEM AND DUE LEARNING VALUE
NUMBER DATE OUTCOMES (%)
Attendance
1. 10%
Due: In each class
Problem sets (Individual)
2. LO1-LO5 20%
Due: In each class
Mid-term exam (Individual)
3. LO1-LO5 20%
Due: Session 8
Final exam (Individual)
4. LO1-LO5 50%
Due: Session 16
Final marks and grades are subject to confirmation by the School Assessment
Committees which may scale, modify or otherwise amend the marks and grades for the
unit, as may be required by University policies.
Note: To successfully complete this unit, students must:
 Achieve a minimum of 50 marks;
 Complete all assessment items; and
 Attend 80 per cent of class time. See attendance requirements in the section of
class policies and rules.
Assessment 2: Problem sets (Individual) (20%)
Overview
There is a problem set for each class. You need to complete and submit it next class.
All problem sets are worth 20% of your total mark for the unit.
Due: each class
Details
Questions in problem sets will vary in diffi culty to assess different levels of
performance from a basic understanding of the material presented to a mastery of the
application of the concepts to new and different problems. This assessment task is
consistent with the aim of developing deep learning – the ability to apply what you
have learned to solve an economic problem. It also tests analytical reasoning skills.
Marking criteria and standards
For multiple-choice questions, the criterion is that students must be able to select the
best available answer from the options given. Each question in each problem set has
the same value – namely, one point.

Assessment 3: Mid-term exam (Individual) (20%)

Overview
This is a 120-minute examination and consists of multiple-choice questions. The
midterm exam will cover all the chapters in Microeconomics in the syllabus.
Due: Session 8
Length: 120 minutes
Details
The multiple-choice questions are much the same format as problem sets. You are
assessed on concepts and application of microeconomic theory to solve
microeconomic problems. Your analytical reasoning and solving skills are examined.
Note: The mid-term examination is held in the regular classroom. There is no make-up
midterm examination.
Note: The midterm examination is a closed-book exam. No materials are to be brought
into the examination venue.
Marking criteria and standards
For multiple-choice questions, the criterion is that students must be able to select the
best available answer from the options given. Each question in the exam has the same
value – namely, one point.

Assessment 4: Final exam (Individual) (50%)

Overview
This is a 120-minute examination and consists of multiple-choice questions. The final
exam will cover all the chapters Principles of Economics in the syllabus.
Due: Session 16
Length: 120 minutes
Details
The multiple-choice questions are much the same format as problem sets. You are
assessed on concepts and application of economic theory to solve economic problems..
Note: The final examination is held on-campus. Check the examination timetable for
the location (campus, room number) and time (date, hour) of the exam.
Note: The final examination is a closed-book exam. No materials are to be brought into
the examination venue.
Marking criteria and standards
For multiple-choice questions, the criterion is that students must be able to select the
best available answer from the options given. Each question in the final exam has the
same value – namely, one point. For short answer/essay questions, the criterion is that
students have to give out the right solutions.

All quizzes, the mid-term test, and final exam must be taken on the assigned dates. If
there are extenuating or unforeseen circumstances, the unit coordinator must be
contacted prior to the quiz or exam dates to authorize a make-up if required. No make-
up quiz or exam will be accepted unless a prior approval granted by the unit
coordinator based on a Special Consideration Application for a supplementary
examination.
Teaching activities
Schedule of activities
WEEKLY READINGS
SESSION PROGRAM SCHEDULE
& ACTIVITIES
1 Part 1. Introduction
Chapter 1: Ten Principles of Economics Ch1
Chapter 2: Thinking Like an Economist Ch2
2
Chapter 3: Interdependence and the Gains from Trade Ch3
PS 1
Part 2. How Markets Work
Chapter 4: The Market Forces of Supply and Demand Ch4
3 Chapter 5: Elasticity and Its Application Ch5
Chapter 6: Supply, Demand, and Government Policies Ch6
PS 2
Part 3. Markets and Welfare
Chapter 7: Consumers, Producers, and the Efficiency of Ch7
Markets
4
Chapter 8: The Cost of Taxation Ch8
Chapter 9: International Trade Ch9
PS 3
Part 4. Firm Behavior and the Organization of Industry
Chapter 13: The Costs of Production Ch13
5
Chapter 14: Firms in Competitive Markets Ch14
PS 4
Chapter 15: Monopoly Ch15
Chapter 17: Oligopoly Ch17
6
Chapter 16: Monopolistic Competition Ch16
PS 5
Part 5. Consumer Choice
7 Chapter 21: The Theory of Consumer Choice Ch21
Review on Microeconomics PS 6
8 Mid-term Exam
 WEEKLY READINGS
SESSION PROGRAM SCHEDULE
& ACTIVITIES
Part 6. The Real Economy in the Long-run
Chapter 23: Measuring a Nation’s Income Ch23
9
Chapter 24: Measuring the Cost of Living Ch24
PS 7
Chapter 25: Production and Growth Ch25
Chapter 26: Savings, Investment and the Financial System Ch26
10
Chapter 28: Unemployment Ch28
PS 8
Part 7. Money and Prices in the Long Run
Chapter 29: The Monetary System Ch29
11
Chapter 30: Money Growth and Inflation Ch 30
PS 9
Part 8. The Macroeconomics of Open Economies
Chapter 31: Open-Economy Macroeconomics: Ch31
12 Basic Concepts
Chapter 32: A Macroeconomic Theory of the Open Economy Ch32
PS 10
Part 9. Short-Run Economic Fluctuations and Stabilization
Chapter 33: Aggregate Demand and Aggregate Supply Ch33
13 Chapter 34: The Influence of Monetary and Fiscal
Policies on Aggregate Demand Ch34
PS 11
Chapter 35: Short-Run Trade-off between Inflation and Ch35
14 Unemployment

15 Overall review on Principles of Economics

16 Final Exam

Tutorials
Tutorials following the lecture in each session provide students the opportunity to
apply and share knowledge by doing a variety of in-class activities individually or in
group such as exercises, discussion, and presentation. These activities focus on
demonstrating your skills and help you build your ability to achieve the learning
outcomes for this unit.
Tutorial questions/exercises will be provided in class. You will be expected to have
completed specific reading and exercises from the textbook and other required
materials prior to attending each lecture and tutorial class. If you have not prepared
adequately, you will not get the full benefit from this learning opportunity.

Learning resources
Essential reading
Mankiw, N. G. (2021). Principles of Economics (9 th ed.). South -
Textbook
Western Cengage Learning.
Recommended
None
reading